Maine Real Estate Blog

If you are selling or buying a home and a home inspection reveals it to be positive for Radon, fear not. Below are answers to common Radon questions.

What is Radon? Radon is a radioactive gas that is found in homes across the United States. In fact, 1 in 3 homes in Maine will likely have an elevated radon Level. Radon comes from the natural breakdown of uranium in soil, rock and water and it gets into the air we breathe. It moves up through the ground to the air above and into your home through cracks and other holes in the foundation. It can also show up in your well water. Any home, no matter the age, and regardless of how well sealed it may be -can test high for Radon.

What Risks are Associated with Radon? In 1998, a study was done on radon and lung cancer by the National Academy of Sciences. It found that approx. 12% of lung cancer deaths in the United States are linked to Radon. Radon is the second leading cause of death due to lung cancer in the Unites States.

How do I Test for Radon? Testing for Radon requires special equipment because you cannot see or smell radon. Its best to contact a registered Radon tester. Many home Inspectors can do this test for you. Maine law requires that the testing device be placed on the lowest livable level of the home. If you have a full basement that can finished as additional living space it should be placed there however if  you have a crawl space, the first floor should be tested. Test for Radon typically need to remain on site for 24-48 hours.  When testing a house, all windows and doors MUST remain closed.

What is Considered a High Radon Level? Radon test results are reported in picocuries per liter of air ( pCi/L) Maine recommends that your seek radon treatment if your home tests at 4 pCi/L or higher.

How do I Reduce the Level of Radon in my Home?  Lowering the Radon in your home will vary in cost depending upon how your home was built as well as other factors, however most homes can be fixed for approx $1,200 on average. The level on Radon in your home has no bearing on the cost of installing a mitigation system.   The most reliable, durable, and least expensive method for lowering Radon is to install a simple system using pipes and fans. This system is referred to as Sub-Slab Depressurization or Sub-Slab Suction. This system removes Radon gas from below the home before it can enter the home.

How do I Find Someone to Fix my Radon Problem? If you are living in Maine you can call 1-800-232-0842 or visit www.maineradiationcontrol.orgfor a list of registered Radon mitigators in your area.

What About Radon in My Water? If you home gets its water from a well, it is also a good idea to have your water tested for Radon. The Maine Bureau of Health recommends Radon concentrations in drinking water of 20,000 pCi/L or above to be reduced. Testing for Radon in your water is a different test then testing for Radon in the air and you must specifically ask your home inspector to do both tests.

I read an interesting article in  Realtor Magazine this month about  the new baby boom that the United States is currently experiencing and its potential effect on home sales. According to the article called “The New Baby Boom” by Robert Freedman, the US adds one person every 13 seconds. At the start of 2008 the country had almost 3 million more residents then it did at the start of 2007. The US birth rate is now the highest it’s been in more then 40 years. This is great news for the housing industry according to economists, because a new household formation is the first step toward home ownership. The population gains we are currently experiencing point to huge demand in the years to follow.

The article also cites immigrant households as having the highest home ownership rates of all demographic groups, that’s according to the Home-ownership Alliance. After an immigrant family has been in the country for 30 years, their rate of home ownership rises to just below 75 percent.  Economists believe that once consumer confidence returns to the housing market, sales will boom.

www.brettdavisrealtors.com

It was a snowy month in January and along with the snow came fewer sales and lower sales prices statewide.  On average for the state, single-family real estate sales fell over 28% in January 2008 compared to January of 2007. High snow fall totals may have had some impact on this number.

The medium sales price statewide for single family homes dipped by approx. 2% to $185,000. While prices did decrease statewide some counties saw double-digit price gains like the Belgrade Lakes Region where many buyers have little need for financing.

Nationwide real estate sales were down by 22.4% this January when compared to last January and the medium sales price dipped 5.1% to $198,700.

In Cumberland County  the number of homes sold fell 25.63% in the rolling quarter between Nov. 1st 2007- January 31, 2008 compared to Nov 1st 2006-January 21, 2007. Prices fell by 3.39% during this same time period.

www.brettdavisrealtors.com

If you think your home needs a few updates before putting it on the market or you just want to make sure your improvements are a good investment, consider the following advise on upgrades.

Upgrades that Add Value

Kitchens:Today people are looking for larger kitchens with new appliances, quality counter-tops, and an open feel. A kitchen update is a great investment, just be sure to stick to the basics. Focus on new cabinets, sink, counter-tops, and flooring. Also add updated, quality appliances. Keep in mind that custom tile work and built in cappuccino makers may be a great luxury  but when you sell it won’t make much difference to the price.

Bathrooms:Updating a bathroom is another great idea. Buyers are often turned off by dated bathrooms. Freshen yours up with a new tub & shower, new vanity, and new flooring. Adding a second bathroom to your home can make a huge difference as there is nothing more essential to a family’s comfort.

Master Bedrooms: Master bedrooms have become a very sought after feature. If yours is ho-hum, try enlarging it, adding a bath, or a walk-in closet.

Decks & Patios: Outdoor living spaces can be a relatively inexpensive way to improve your home. Decks & Patios that are large enough for the family and entertaining are a big plus.

Renovating a Basement or Bonus Room: If you have an extra room above the garage or a large basement serving as storage space only, consider turning it into additional living space. If done properly it will be an excellent improvement. Just make sure you invest a reasonable amount of money into the project so that it doesn’t appear to be just an old basement posing as a family room.

Curb Appeal- A little updating on the exterior of your home can greatly enhance it’s appeal . Fresh exterior paint, a green manicured lawn, and nice landscaping will draw a buyer to your home. The outside of the home is the first thing a buyer will see when they drive by or see your ad. Keep in mind that elaborate and expensive landscaping will generally not add value.

Home Improvements that may not add Value

Custom Design-You may have always dreamed of a wine cellar, or a built in 300 ft aquarium, but a future home buyer may not be interested. Try to think of improvements that are universally appealing and useful.

Fancy Technology-While having a home movie theatre, or hi-fi stereo system running through the entire house, may be very enjoyable, these items tend to become out-dated very quickly.

Swimming Pools- Swimming pools rarely add value to a home and in some cases they can actually decrease the value of your home. This is because home buyers only see the maintenance cost and liability of owning them.

What is most important to consider when deciding on what home improvements to make is the neighborhood in which you live. What is standard for where you live? You may live in a very high end community where everyone has a pool and custom work galore. In these cases its OK to splurge. However, if you’re in an average home try to stick to the basics. If you’ve gone over board in a neighborhood of lesser quality homes you will not get a return on your investment.

www.brettdavisrealtors.com

The median sales price for a single-family home in Maine increased slightly in 2007 according to the Maine Real Estate Information System, inc. while reported sales decreased by just over 10 percent from 2006.

Statewide in Maine, the median sales price reached $194,000, up .77% overall for the year while in Decemeber only, prices statewide fell by 4.62% and sales were down 23.27%.

Nationally, single family home sales declined 21.6% and sales prices dipped 6.5% in the month of December. Naionally for all of 2007 sales fell 13% and prices decreased by 1.8%.

In Cumberland County, the number of units sold fell 7.29% for the year but prices were up by .40%.

www.brettdavisrealtors.com

We would love you hear some of your real estate questions! Email them to us and we’ll post the answers on our blog!

Need to sell your home quickly?? Want to make sure you get the most money you can for your home? Follow these tips from Barbara Corcoran of the Today Show to sell quickly & get the highest sticker price in a slowing housing market.

5 Mistakes Homeowners Make

1) Making Small Price Reductions Again & Again

The longer a home is on the market the more of a stigma it will have. Dropping the price  frequently by small amounts makes the offer appear even weaker. A home that’s been on the market for a long time with many price reductions will give a buyer the impression that a lot of people have seen and then rejected it. Therefore why bother going to look at it?

The best thing to do in this situation is to slash the price. Find out what similar properties on the market are going for and price yours below theirs. The most enticing homes on the market are the newest and the cheapest. If you can be both your house will sell in no time.

2) Hiring The Wrong Broker:You want a broker who is enthusiastic and professional. In real estate the top selling agents (about 10%) do 90% of the all the business. Make sure your broker  keeps in touch with you and is easily accessible.

3) Waiting It Out: If you decide to wait, you are joining the thousands of other homeowners who have also decided to wait. When a few decide it’s time to take the plunge, you are already too late. If you need/want to sell now, then sell now. There will never be a better time.

4) Showing Your House Before You Get Rid Of The Clutter:  Just as you wouldn’t try to sell your car without cleaning it out first, you shouldn’t sell your house without de-cluttering. A buyer doesn’t want to see your house, they want to see their future house! Find a temporary place for your personal items and let people get a real look at your home.

5) Not Taking The First Bid:Often times when a buyer gets an early bid on their home they get excited & filled with confidence that another, better offer is just around the corner. Unfortunately this is not always the case and you can be left with no bids at all. The longer you home sits the more value it will loose, so work with those early bids!

www.brettdavisrealtors.com

The following information comes from  Maine Real Estate Information Systems, Inc.(MREIS), a subsidiary of the Maine Association or Realtos. MREIS is a statewide Multiple Listing Service with over 5,800 licensees imputting active and sold property listing data.

Median Sales prices for single-family existing homes in Maine edged upward in November while sales of those homes were down over 10 percent. According to MREIS, 891 homes sold during the month of November 2007, a decrease of 10.63 percent from November 2006.

Statewide, median sale prices rose 1.62 percent. Maine’s median existing single-family home price reached $188,000 last month, up from $185,000 last year. The median sales price indicates that half of the homes were sold for more and half sold for less.

The National Association of Realtors reported that across the country, single-family home sales decreased 19.9 percent in the past 12 months. The national median existing sales price dipped 3.7 percent to $208,700.

Regionally, sales in the Northeastern United States mirrored national statistics with a 19.4 percent drop in sales. NAR said prices are also down regionally: The median sales price in the Northeast decreased 3.2 percent to $258,300.

The winter season has ushered in positive sales for some resort areas. The Bethel/Sunday River market has seen steady sales throughout November. The early season snow and the recent sale of Sunday River Ski Resort have been positive influences on that market which consits primarily of second homes.

Here are the Home Sale Stats for Cumberland County:

Units sold from September 1-November 30 2006:   760 Units

Units sold from September 1-November 30 2007:   642 Units 

Thats a change of -15.54%

The Median Sales price for Cumberland County between September 1-November 30 2006 was $258,500                              

The Median Sales price for Cumberland County between September 1-November 30  in 2007 was $249,950

Thats a change of 3.31%.

The following information was provided by the Maine Association of Realtors. The data reflects properties reported as sold in the Multiple Listing Service within the time periods indicated.

South Portland—- Sales of Maine real estate continued to drop in October 2007, while prices for single-familiy, existing homes dipped a slight 1.95 percent. Realtors reported 1,041 sales across Maine last October. Thats down 12.23 percent compared to 1,186 sales during the month of October 2006.

The median sales price for a single-family existing home was $188,500 in October, down slightly from $192,250 one year ago. The median sales price indicates that half of the homes were sold for more and half sold for less.

The National Associaton of Realtors found that nationally, sales of existing single family homes dropped 20.8 percent in October. The national median price of a single family existing home decreased by 6.3 percent in one year to $2 05,700.

Regionally, in the Northeast, sales were down by 12.6 percent. The Regional median sales price rose 1.3 percent to $205,700.

This data backs up the idea that its now more important then ever to price a home appropriatly to the market and to commission it appropriatly. Its also a great time for buyers as there are far more choices and lower prices.

Below are two charts showing statistics for Maine and its 16 counties. The first chart lists statistics for the month of October only, statewide. The second chart compares the number of existing, single-family homes sold (units) and volume (MSP) during the months of August, September and October of 2006 & 2007.

                                                       Statewide October Only Chart

  Units Sold ‘06      Units Sold ‘07    Change       MSP ‘06     MSP ‘07     %Change

         1186                        1041                  -12.23%         $192,250    $188,500      -1.95%

In Real Estate there are 4 types of deeds that are commonly used. Below is a brief explanation of each.

General Warranty Deed: In this type of deed the seller conveys a property with warranties or covenants and is legally bound to these grantees.  A General Warranty Deed provides the most protection to a buyer. Some basic warranties include:

-Covenant of seisin: This basically means that the seller owns the land and has the    right to convey it.

-Covenant against encumbrances: The seller guarantees that the property is free from any liens or encumbrances that are not stated in the deed.

-Covenant of quiet enjoyment:This states that the buyer’s title will be good against any third party attempting to establish title of the property.

-Covenant of further assurance: This means that the grantor will provide any documents or information necessary to make the title good.

A warranty deed does not just cover the time a grantor owned the property, but it extends for the entire life of the property. The grantor of a warranty deed is liable for title problems that occur before and during their ownership.

Special Warranty Deed: This type of deed conveys just two warranties: that the grantor has received title and that  no encumbrances occured during ownership that are not included in the deed. The grantor of this deed is not liable for any problems with the title that have occurred prior to their ownership.

Bargain & Sale Deed:  This type of deed does not grantee against encumbrances on the property. All this deed guarantees is that the grantor holds title. This type of deed is most commonly used in tax sales & foreclosures. The grantor of this deed can not be held liable for any problems that later arise with the property.

Quitclaim Deed:This is the least protective type of deed for a buyer. This deed only conveys whatever interest the grantor has in the property. These types of deeds are typically used to fix defects in the title or to transfer property between family members.